This Annual Report on Form 10-K contains forward-looking statements that involve
risks and uncertainties. These statements relate to future events or our future
financial performance. In some cases, you can identify forward-looking
statements by terminology including, "could" "may", "will", "should", "expect",
"plan", "anticipate", "believe", "estimate", "predict", "potential" and the
negative of these terms or other comparable terminology. These statements are
only predictions. Actual events or results may differ materially.

While these forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect our current judgment regarding the
direction of our business, actual results will almost always vary, sometimes
materially, from any estimates, predictions, projections, assumptions or other
future performance suggested in this Annual Report.

During the year ended December 31, 2017, we incurred operating expenses of
$1,420,196 compared with operating expenses of $935,968 during the year ended
December 31, 2016. The reason for the increase is due to company has share
compensation expense of $867,100.

For the year ended December 31, 2017, we incurred a loss from operations of
$1,031,877 compared with a net loss of $792,962 for the year ended December 31,
2016.

Liquidity and Capital Resources

As at December 31, 2017, we had a cash and cash equivalents balance of $18,339
and total assets of $2,027,386 compared with $ $379,078 of cash and total assets
of $2,394,577 as at December 31, 2016. The decrease in cash was due to the line
of credit and accounts payable being paid off in 2017.

As at December 31, 2017, we had total liabilities of $4,711,120 compared with
total liabilities of $4,850,865 at December 31, 2016. The decrease in total
liabilities was due to the line of credit and accounts payable being paid off in
2017.

As at December 31, 2017, we had a working capital deficit of $966,516 compared
with a working capital deficit of $3,061,130 as at December 31, 2016.

Cash flow from Operating Activities

During the year ended December 31, 2017, the cash used by operating activities
total $360,739 compared to the cash provided by total $1,389,872 during the year
ended December 31, 2016. The cash was primarily used to pay out accounts payable
in 2017 related to the inventory purchase for the e-vehicle project.

Cash flow from Investing Activities

During the year ended December 31, 2017, the cash provided by investing
activities total $0 compared to the cash used in total $1,506,152 during the
year ended December 31, 2016. Annual amounts primarily consist of capital
expenditures to support our manufacturing efforts. Also included in investing
cash flows for the years ended December 31, 2017 and 2016, are $0 and $1.5
million, respectively, related to changes in restricted cash to support
collateral requirements for our line of credit facility.

Cash flow from Financing Activities

During the year ended December 31, 2017, the cash used by financing activities
total $0 compared with total $1,998,850 during the year ended December 31, 2016.
The 2017 result is due to an offset by $1,998,850 in repayment under the line of
credit facility.

The accompanying financial statements have been prepared in accordance to FASB
Subtopic 205-40, Presentation of Financial Statements-Going Concern. In
connection with preparing financial statements for each annual and interim
reporting period, an entity's management should evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt
about the entity's ability to continue as a going concern within one year after
the date that the financial statements are issued (or within one year after the
date that the financial statements are available to be issued when applicable).
Greenkraft's management evaluated the current financial situation of the company
and believes the company has no going concern within one year.

During the year ended December 31, 2017, the Company incurred a loss from
continuing operation of $1,031,794 and a net loss $1,031,877, and the
stockholders' deficit was $2,621,065 and the working capital deficit was
$966,516. The working capital deficit have been majority funded by accounts
payable to its related parties and related party debt. Based on the financial
support letter from the CEO of Greenkraft, he and his related party entities,
has no present or future plans or intentions to (A) liquidate Greenkraft, Inc.;
(B) sell or otherwise dispose of all, or a significant portion of, its
investment in the Company or otherwise change its capital structure; (C)
discontinue providing financial support to Greenkraft, Inc; or (D) pursue the
collection if the company has cash flow issues. Based on the cash burn
calculation, the Company is expected to have sufficient cash flow to cover the
normal business operations for the twelve months-ended December 31, 2018. for
the next 12 months following this filing, the Company will continue to receive
sales orders, recognize revenue by selling the qualified trucks for the
government incentive program, committed financial support from the owner and his
related parties to fund its ongoing operation until the Company is able to meet
its own obligation as they become due.

Management believes they will have sufficient funds to support their business
based on the following: (a) revenues derived from signing up new dealers'
contracts and delivering alternative fuel trucks to them; (b) reclassify
accounts payable- related parties and related parties' debt as non- current
liabilities in amount of $816,334 and $1,901,916, respectively, which is related
to the financial support letter from the CEO, and (c) the CEO can raise
additional funds needed to support our business plan. Management intends to seek
new capital from owners and related parties to provide needed funds, as
necessary. However, there can be no assurance that the Company can raise any
additional funds, or if it can, that such funds will be on terms acceptable to
the Company.

The financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

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